An S-Corporation (S-Corp) is one of two types of corporations defined by subchapter of the tax code they are governed by.
Like more common C-Corporations (C-Corp), or publicly-traded corporations, S-Corps provide limited liability to management and shareholders, protecting the personal assets of those who would otherwise face personal liability in case of a creditor’s claim. They are also subject to similar government regulation, and are required to be registered with the state.
Unlike C-Corps, however, S-Corps are closely held businesses with fewer than 100 shareholders that are all individual American residents. In addition, S-Corps are taxed using “pass-through taxation” – by avoiding tax at the corporate level they do not pay double tax on income like a C-Corp.
For a free, confidential conversation to discuss this and other business law matters, including business formation legal services, contact Maryland business attorney Stephen J. Reichert at 410-299-4959, sreichert@reichertlegal.com or by clicking here.
Day, evening and weekend appointments are available in office or at your residence. Mr. Reichert personally serves business law clients throughout the entire state of Maryland.
Stephen looks forward to assisting you with your Maryland business law needs.
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